Case study - Cheshunt Lakeside, Cheshunt
We are playing a pivotal role in the regeneration of a brownfield site in Cheshunt.
Our largest ever development, delivered in joint venture, Cheshunt Lakeside is set to create a new ‘urban village’, with planning approval granted for 1,725 residential plots and 21,325sqm of commercial and educational space. The scale of Cheshunt is enabling us to flex our business model, using our various revenue streams to maximise returns and deliver long-term value.
1,725
Residential Plots
21,325 sqm
Commercial and educational space
Land at the heart of what we do
The site has excellent credentials for sustainable regeneration: it is previously developed land that can help avoid building in the Green Belt, it is within walking distance of a railway station with good services to London and Cambridge and it is located at the entrance to a regional park. Recognising its potential, the Group, in joint venture, purchased the majority of the land at Cheshunt Lakeside in 2016.
Planning expertise
Planning permission took three years of close consultation with the local Councils and community and was granted in June 2019, with the terms of the Section 106 agreement agreed promptly and signed in August 2019. The Group, in joint venture, owned and controlled 1,253 of the residential plots and 4,905sqm of the commercial and educational space with consent.
Adding long-term value
Locally, the investment in Cheshunt Lakeside will benefit Cheshunt and the area by helping to improve the environment, the physical and social infrastructure, access to jobs and businesses and by meeting the shortfall in new homes. Cheshunt Lakeside is not a housing estate but a new neighbourhood, with the full range of services that will provide a walkable, mixed-use neighbourhood. In addition, there will be sufficient new space for businesses, thereby improving the employment prospects locally. The masterplan evolved through an iterative consultation process with the Council and interested parties. Extensive public consultation was undertaken and changes made to the masterplan design as a result of views expressed during this process.
Maximising the value of land with planning consent
Land sale – and a build contract for Inland Partnerships
Cheshunt Lakeside will be delivered on a phased basis, with detailed planning approval to be granted for each phase of development. We achieved detailed planning consent for the first phase of 195 units in March 2020 and in July 2020 announced the sale of this part of the development to local housing association, B3Living. The land sale generated £15.0m with payment received in full on completion in August 2020. Further and ongoing returns were secured through a £34.5m contract with the same housing association to construct the homes. Construction began in November 2020 and the first homes will be handed over in the first half of 2022. In 2021, we achieved planning consent for Parcel 14 for 22 homes and 350m2 of commercial space. These homes will be offered for private sale and construction is underway
We are now also at advanced negotiations with a leading Build to Rent (BtR) fund for the development of Phase 1B of 205 homes, following receipt of detailed planning consent in June 2021. The site’s credentials make it an extremely attractive proposition.
Rental income
On a project of this scale, there is an opportunity to put to good use the land available prior to commencement of construction. We are managing approximately 20 short-term leases to a variety of tenants, generating £0.4m during the financial year. Working with Broxbourne Borough Council, we have also been able to provide 32 temporary homes for those most in need in the Borough, through our modular housing subsidiary, Hugg Homes. The homes add to the Council’s temporary accommodation portfolio, providing a high-quality and cost-effective alternative to bed and breakfast or hostel accommodation.
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